BorgWarner (NYSE:BWA) Cut to Neutral at Bank of America

Key Points

• BorgWarner has been downgraded from a "buy" rating to a "neutral" rating by Bank of America, with a price target set at $46.00, indicating a potential upside of 5.13% from its current price.
• In contrast, Robert W. Baird and other firms have upgraded their ratings for BorgWarner, with price objectives ranging between $41.00 and $52.00, demonstrating mixed analyst sentiment.
• BorgWarner recently reported earnings that exceeded expectations, with a revenue of $3.64 billion for the quarter, marking a 1% increase compared to the previous year.

BorgWarner (NYSE:BWA - Get Free Report) was downgraded by equities research analysts at Bank of America from a "buy" rating to a "neutral" rating in a research report issued to clients and investors on Wednesday, Marketbeat reports. They presently have a $46.00 price target on the auto parts company's stock. Bank of America's target price would indicate a potential upside of 5.13% from the company's current price.

A number of other research firms also recently commented on BWA. Robert W. Baird raised shares of BorgWarner from a "neutral" rating to an "outperform" rating and raised their price objective for the stock from $41.00 to $52.00 in a report on Wednesday, September 3rd. Wells Fargo & Company raised their price objective on shares of BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a report on Tuesday. Morgan Stanley raised their price objective on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a report on Tuesday, August 12th. Barclays reaffirmed an "overweight" rating and set a $45.00 price objective (up from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Finally, JPMorgan Chase & Co. raised their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a report on Monday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, BorgWarner has a consensus rating of "Moderate Buy" and a consensus target price of $41.21.

BorgWarner Stock Down 1.5%

BWA stock opened at $43.76 on Wednesday. BorgWarner has a twelve month low of $24.40 and a twelve month high of $44.45. The company has a market cap of $9.47 billion, a PE ratio of 46.55, a price-to-earnings-growth ratio of 1.34 and a beta of 1.09. The business's 50-day simple moving average is $38.86 and its 200 day simple moving average is $33.20. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The business had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period last year, the business earned $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, research analysts anticipate that BorgWarner will post 4.28 earnings per share for the current year.

BorgWarner declared that its Board of Directors has authorized a share buyback program on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. The trade was a 4.28% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Stefan Demmerle sold 5,000 shares of BorgWarner stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total transaction of $202,500.00. Following the sale, the vice president directly owned 229,040 shares of the company's stock, valued at $9,276,120. This represents a 2.14% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 31,272 shares of company stock valued at $1,263,318. Company insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of BWA. Cetera Investment Advisers grew its holdings in BorgWarner by 78.6% during the fourth quarter. Cetera Investment Advisers now owns 37,521 shares of the auto parts company's stock valued at $1,193,000 after purchasing an additional 16,518 shares during the period. Deutsche Bank AG boosted its holdings in shares of BorgWarner by 57.3% in the fourth quarter. Deutsche Bank AG now owns 1,302,324 shares of the auto parts company's stock valued at $41,401,000 after buying an additional 474,529 shares during the period. Focus Partners Wealth boosted its holdings in shares of BorgWarner by 40.1% in the fourth quarter. Focus Partners Wealth now owns 10,759 shares of the auto parts company's stock valued at $342,000 after buying an additional 3,080 shares during the period. Janus Henderson Group PLC lifted its position in BorgWarner by 0.4% in the 4th quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company's stock valued at $3,580,000 after acquiring an additional 501 shares in the last quarter. Finally, LRI Investments LLC lifted its position in BorgWarner by 1,515.0% in the 4th quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock valued at $31,000 after acquiring an additional 909 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

About BorgWarner

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.

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